Competitive Strategy by Michael Porter

Today I'm focusing on reviewing Competitive Strategy book written by Michael Porter. This is an Industry oriented book and explains some wining strategies by the industries. This book is the best guide for any new start-up company or for any organization to chose a right strategy and how to become a market leader. 

 The best to competitive as an individual or as an origination is to know yourself better. Once you understand yourself better then there is no competition! This means companies need to do self-analysis first in order to stay in the competitive market.

 Let's see some important Insights from this book... 

Insight - 1. There are 5 forces that determine the state of competition in an Industry.

 These are Threat of Entry, Competition among Existing Competitors, Substitution of Product, Bargaining of Power of Buyers and Suppliers. Companies have to build strategies to cope with these five forces. 

 Insight - 2. There are 3 general competitive strategies. 

These are the 3 strategies to avoid above 5 barriers in an Industry Competition. 

1.Cost Leadership

In it, a firm sets out to become the low cost producer in its own industry.

2. Differentiation

In it, a firm tries to be unique in its own industry along some dimensions that are highly valued by buyers. 

Differentiation is rewarded for it's uniqueness in the market.

3. Focus

This helps for a narrow choice of the competitive scope within any industry. The focus strategy has two different  variants. One is Cost Variant and other is Differentiation Variant.